Taiwan Unveils Goals for Renewable Energy Installation Capacity

Taipei, Aug. 23, 2010 (CENS)--The Executive Yuan, Taiwan's Cabinet, recently unveiled the installation capacity goals for the island's renewable energies, which are set at 6,388 megawatts for 2020, 8,968 megawatts for 2025 and 10,858 megawatts for 2030.

The government also projects renewable energies, namely solar power, offshore wind power and onshore wind power, to account for at least 5% of the total energies used to generate the island's electric power beginning 2020.

According to Minister Without Portfolio C.Y. Liang, the government's 5% goal pales against the 30% set by many European nations because Taiwan is a densely populated island and has scant natural resources as compared with European nations. However, he stressed the government will spare no effort increasing the uses of renewable energies island-wide.

The 2025 capacity goal of 8,969 megawatts is a significant improvement from a previous goal of 6,500 megawatts.

Primary incentive for boosting the island's renewable-energy industry is feed-in tariff (FIT), a procurement payment offered by the government to private providers of renewable power. Liang noted that the government will revise its FIT policy to limit procurement volume of solar power and adjust procurement payments in light of excessive capacity installations of solar power by the private sector. He said the island's FIT rate averages NT$10 per kilowatt, around 20-25% higher than the rate offered by German government.

As for procurement volume limit, the government will not buy the renewable power generated by installations larger than the set 500 kilowatt ceiling, Liang said. He pointed out that the government has budgeted NT$1.59 billion (US$49 million) for procurement of solar power this year. But the payment would likely become a heavy financial burden next year once the government agrees to pay an estimated NT$2,200 billion (US$6.8 billion) for the procurements on 20-year contracts of over 573 megawatts, which private providers are applying for permission to install.